Community Chat

[santorini]

I do not know anything about retail and I'm just trying to understand what might be at risk. 

If XYZ Clothing wants to sell its items on QVC, does it get the items ready, agree on a bulk price with QVC, and then sell the entire block to QVC for future handling?  If so, they probably would not have to worry about returns because that would then be QVC's problem. 

Maybe there is a second possibility where the clothes would just be "on loan" to QVC as they attempt to sell them and XYZ Clothing would only get paid for the items that sell.

[santorini]

I'm just trying to understand what a potential vendor might be thinking, considering the financial position of QVC.  Would the risks outweigh the benefit of sales and exposure or might it be too risky.  I worry that if a lot of vendors feel nervous, that might lead to a more rapid decline.

[SilleeMee]

I would think it would depend on the contract with a vendor. My guess is that the contracts have different rules and regs so it might be complicated.

I see echoes of ShopHQ. 

[Tinkrbl44]

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@santorini wrote:

I do not know anything about retail and I'm just trying to understand what might be at risk. 

If XYZ Clothing wants to sell its items on QVC, does it get the items ready, agree on a bulk price with QVC, and then sell the entire block to QVC for future handling?  If so, they probably would not have to worry about returns because that would then be QVC's problem. 

Maybe there is a second possibility where the clothes would just be "on loan" to QVC as they attempt to sell them and XYZ Clothing would only get paid for the items that sell.

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@santorini 

I seriously doubt any manufacturer/vendor "decides" to sell on QVC.   You can do that on Ebay or Amazon, but not QVC.     

QVC has buyers who carefully investigate possible new products, their ability to manufacture large amounts quickly, if needed, and if the product would fit with what already sells well.  Yes, some of the products are "boring," but they definitely have a lower return rate.

Did you know that everything you see in a Costco store is there on consignment?  Costco doesn't buy products to sell in its stores, and I doubt many retailers do.   

QVC reserves the right to sell merchandise at the price THEY decide.  The vendor has little say in that.

There's something else I wanted to mention, but I forgot the point.  I'll come back and add it when I remember.    

[Kachina624]

@santorini.  It's obvious QVC has two kinds of sellers, thus different types of contracts.  The ones we mostly buy from are the ones who choose to have their items presented on air after they are approved by the sales department and meet their requirements.

The other type of seller chooses to just have his product listed on qvc.com and we find them through searches. 

Some sellers choose to warehouse their own product and ship it, whereas others have large batches sent to the Q warehouses for customer distribution.

[santorini]

I do understand that.  I guess I didn't word my original post correctly.  My main concern is that vendors might get nervous at the current condition and, if there are too many risks involved, they might pull out and save themselves the headache.  I hope that the incentives are in place so that QVC can still attract and maintain vendors.

[millieshops]

@santorini   I can't say how vendors are making their decisions but I've had several experiences that made me realize the power of TV presentations.  

I was already shopping with QVC when I met a young jewelry designer at at craft show on Long Island, NY.  She desperately wanted to sell on QVC because it would give her access to so many people at one time.   Her problem was finding a manufacturer she could afford to work with.  

Some years later, I met a QVC designer in a local store near me here in Florida.  When I walked into the department where he was working, he explained to me that the reason he was so pleased to have come to QVC was that it gave him access to thousands of shoppers who might not have ever heard of him otherwise.  I know my life certainly doesn't require what he was selling that day;  I'm sure he realized that but he couldn't have been more cordial talking to me.

[Tori3569]

QVC and all retailer have buyers who visit manufacturers and designers in market, or for a company of QVCs size, they may come to Westchester with their samples. 

Everything shown is samples and the buyers decide whether or not to place an order.  An order would be based on the buyer's past experience with the manufacturer and their overall category sales projections.  This is done at least a year before the season they're buying for.  

For their vertical products (in house designers) it's a similar process with the buyers deciding the styles to go forward with and the quantities.

I would think some of the new items may be on consignment which is why some vendors sell through and then are gone (recent example is Offset).

In the current situation QVC is in, although nothing has been filed yet, I think QVC would be given some time and consideration when invoices need to be paid--especially from some of the vendors that have become multimillionaires by selling here.  They are probably given details to the reorganization.  

[Puppy Lips]

When we first moved to Florida in 2007, there was business neighbor in our office complex. She had designed a scrapbooker’s seat cushion. The cushion had pockets on the sides for supplies, like scissors. She said she was on QVC to sell it. She did have a supply there in the office. It was my understanding that QVC bought a supply from her. She had to fly to QVC on her dime to show up on air. She was not in that office very long before she was gone.

[Lucky Charm]

I recently started purchasing clothing from Jennie Garth, who, to me, is a 'newer' vendor.

She's on Q2, which I don't ever watch, but my TV records her shows.  Mostly shot from her home.  

So if Q goes down, I'm hoping I can still purchase from her, via SM.  I signed up for some platform she is on, although I didn't choose to pay for it as suggested.

If she wants to continue to sell clothes, she'll have to do it without me 'paying' (to be a patron of sorts?).

She'll still make money from me, but just for her clothing, not her platform...